Core Viewpoint - Qingdao Taikaiying Special Tire Co., Ltd. (hereinafter referred to as "Taikaiying") has successfully passed the IPO review on the Beijing Stock Exchange, despite relying entirely on external OEM factories for tire production, raising concerns about its dependency on a key supplier facing financial difficulties [1][26][31]. Group 1: Company Overview - Taikaiying, established in 2007, specializes in the design, research and development, sales, and service of tires for mining and construction, with main products including engineering radial tires and all-steel truck tires [2][4]. - The company is controlled by a couple, Wang Chuan Zhu and Guo Yong Fang, who hold a combined 79.71% of the shares [7][8]. Group 2: Financial Performance - In the reporting period, Taikaiying's revenue was 18.03 billion, 20.31 billion, and 22.95 billion yuan, with year-on-year growth rates of 21.18%, 12.64%, and 12.99% respectively [18][20]. - The net profit attributable to the parent company was 1.08 billion, 1.38 billion, and 1.57 billion yuan, with growth rates of 81%, 22.84%, and 13.58% respectively [18][20]. - The company's gross profit margins were 18.08%, 19.20%, and 18.79% during the same period, fluctuating and generally lower than the average of comparable companies [21][20]. Group 3: Supply Chain and Dependency Risks - Taikaiying's procurement from its top five suppliers accounted for 75.48%, 78.73%, and 79.85% of total procurement in the reporting years, indicating a high concentration of suppliers [24][22]. - A significant portion of Taikaiying's procurement, amounting to 8.6 billion yuan over three years, was from Xingda Tire, which is currently facing severe debt issues and has been restricted from high consumption [28][26][31]. Group 4: Research and Development - Taikaiying's R&D expenses were 320.17 million, 418.78 million, and 481.24 million yuan, representing 1.78%, 2.06%, and 2.10% of revenue, which is lower than the average R&D expense ratio of comparable companies [35][36]. - The company focuses on scenario-based product development, but a portion of its products are essentially "private label" items, relying heavily on the capabilities of its OEM partners [34][32].